Why Councils Must Evolve to a Strategic Procurement Mindset

Welcome to the second instalment in our Strategic Procurement in Western Australian Local Government Article Series. In our last article we observed that councils must balance compliance with strategic thinking to enable them to move from reactive, transactional purchasing to proactive, planned procurement that drives community and financial benefits. In this article we discuss how councils can adopt the strategic approach necessary to actively drive economic, social, environmental and governance outcomes, while still meeting all compliance obligations under the Local Government Act 1995 and Local Government (Functions and General) Regulations 1996.

Procurement is one of the most powerful levers available to local government, yet too often it is treated as a transactional or compliance obligation rather than a strategic function. In Western Australia,  forward-thinking councils are now shifting away from reactive purchasing and adopting a strategic procurement approach.

What Does a Strategic Approach to Procurement Look Like?

Instead of focusing on “How do we buy this?” strategic councils ask “How do we use procurement to create broader value for our community?”

Strategic procurement is built on five core pillars:

1. Policy Alignment, Not Just Process Compliance

A strategic procurement framework explicitly aligns purchasing decisions to council’s corporate plan, long-term financial sustainability strategy, environmental, social and governance (ESG) targets, economic development goals and Reconciliation Action Plan. It positions procurement as a strategic governance instrument, not an administrative workflow.

2. Proactive Planning, Not Reactive Buying

Leading councils plan their procurement pipeline 12–36 months ahead, engage with the market early, and use procurement to shape project outcomes before scopes are locked in. This avoids rushed tendering and enables market engagement, innovation and competitive value creation.

3. Smarter Contracting Models

Strategic procurement goes beyond issuing one-off tenders. It leverages tools such as standing offer contracts, pre-qualified supplier panels, regional procurement, category management, and outcomes-based contracting to unlock long-term value. The result is a more resilient supply base, improved risk management, and greater overall value for money over the contract lifecycle.

4. Procurement as a Driver of Social, Local and Sustainable Impact

Rather than treating social value as an add-on, strategic councils embed it within it into weighted evaluation criteria,  including local employment, Aboriginal business engagement, sustainability, circular economy and social enterprise participation.

5. Governance, Capability and Accountability

Strategic councils invest in clear role definition, probity discipline and procurement training for both officers and elected members. They implement contract performance frameworks, ensuring delivery, not just award, and measure success in terms of impact and value.

The Opportunity Ahead

For councils, strategic procurement represents a significant shift: from admin to governance, from cost focus to value creation, from reactive transactions to proactive policy enablement. Those who make this shift unlock procurement as a strategic enabler of community, economic and sustainability outcomes.

How Muscat Tanzer Supports Councils to Adopt a Strategic Procurement Model

Muscat Tanzer can help local governments transition from transactional procurement to a strategic, value-creating model by providing:

1. Strategic Procurement Framework & Policy Design

• Drafting / modernising procurement policies to embed strategic objectives, economic development, ESG, Aboriginal participation, circular economy, long-term financial sustainability;
• Designing aligned evaluation frameworks that go beyond price to weighted value outcomes; and
• Ensuring full compliance with laws and regulations in Western Australia including the Local Government Act 1995 and Local Government (Functions & General) Regulations 1996, while enabling flexibility.

2. Procurement Planning & Category Strategy

• Advising on forward procurement planning and market engagement strategies (shifting away from reactive tendering);
• Structuring panel arrangements, standing offers, and category management models; and
• Advising on collaborative / regional procurement and shared services strategies.

3. Smart Contracting Structures

• Designing outcomes-based contracts, performance-linked mechanisms and innovation-encouraging terms;
• Drafting scalable, future-proof panel agreements and master services contracts; and
• Advising on risk allocation, probity, value protection and contract optimisation.

4. Training, Governance & Probity Assurance

• Training executives, procurement staff and elected members on strategic procurement principles and legal obligations;
• Acting as independent probity adviser for high-risk projects; and
• Providing contract performance, benefit tracking and post-award governance frameworks.

Councils seeking to shift from compliance-driven purchasing to strategic procurement can benefit from early legal insight. Engaging advisors early supports compliant, innovative contracting approaches that maximise community outcomes and long-term value. Contact our team to discuss how we can support your council’s strategic procurement journey.